Economy News

from AIER

Established 1999

New England, USA

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    Age of Inflation

    “Professor Hans F. Sennholz is the outstanding student of Ludwig von Mises whose lifetime work specialized in monetary and financial economics. This book is one of his great legacies to economic science. The title Age of Inflation reflects its subject matter and the date of original publication: 1979, the year of the outbreak of double-digit…

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    The Inflation Crisis and How to Resolve It

    “No subject is so much discussed today – or so little understood – as inflation. The politicians in Washington talk of it as if it were some horrible visitation from without, over which they had no control – like a flood, a foreign invasion, or a plague. It is something they are always promising to…

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    “Inflation and Deficit Spending Revisited”

    “In a recent article in this journal, Giffin, Macomber, and Berry (1981), hereafter referred to as GMB, attempt to test the hypothesis that larger deficits cause increases in the money supply and hence inflation. To test the debt monetization hypothesis, they analyze U.S. data for the period 1959-79. Finding no evidence that debt monetization causes…

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    “Budget Deficits and Inflation”

    “The sharp rise in the rate of inflation in 1973, after two years of diminishing rates, was a great surprise to many. What was the primary cause? Many rea-sons have been advanced to explain this change, some of them logical, and some not. Most of the explanations are based, in one way or another, on…

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    “Bank of England’s Mervyn King Warns Over Inflation”

    “Prices rises have consistently defied the Bank’s expectations of a slowdown, adding to pressure on households as wage growth remains weak and the Government introduces a strict austerity package. The Bank’s rate-setters are charged with keeping inflation at 2% but the Consumer Prices Index benchmark has been above 3% throughout the year. However, addressing a…

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    “Money Dominates”

    “Financial panics are usually followed by sharp economic snap backs. The post-Panic of 2008 has failed to follow this typical “V-shaped” economic recovery pattern. After almost two years, the U.S. economy remains mired in an anemic recovery, with a current 2.4% year-over-year rate of growth. This paltry growth rate doesn’t even reach the U.S.’s long-term…

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    “Fannie, Freddie Remain Unfixed”

    “With much fanfare, President Obama has signed the Dodd-Frank financial reform bill, promising the most sweeping reform since the Great Depression. This massive bill extends regulation to many parts of the U.S. economy, and adds new open-ended bureaucracies that expand the powers of government over a wide variety of financial firms. Does the bill really…

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    “New Financial Rulebook Tangles Loan Bundlers, Rating Agencies”

    “A minor rule change in the law unexpectedly shut down the market for selling new bundles of car loans and consumer loans after bond issuers, ratings agencies and the Securities and Exchange Commission found themselves caught in a tangle of old and new regulations. The SEC intervened Thursday afternoon, but traders viewed the incident as…

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    “Experts fear financial reform law will restrict credit to businesses”

    “The landmark Dodd-Frank Wall Street Reform and Consumer Protection Act is meant to bring new stability to the financial system, but there’s not a lot of love for the legislation among local banks, financial experts and business leaders, who say the law will reduce access to credit.” Read more.  “Experts fear financial reform law will…

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    “Some Unpleasant Monetarist Arithmetic”

    “In his presidential address to the American Economic Association (AEA), Milton Friedman (1968) warned not to expect too much from monetary policy. In particular, Friedman argued that monetary policy could not permanently influence the levels of real output, unemployment, or real rates of return on securities. However, Friedman did assert that a monetary authority could…